Money

Which of the following is NOT a function of money?

• Store of value

• Unit of account

• Medium of exchange

• Exchange of debt

The fact that a $10 bill received today will still be worth $10 100 years from now is an example of which function of money?

• Store of value

• Unit of account

• Medium of exhange

This money is valuable because it is made of something valuable and it's all identical

• Commodity money

• Representative money

• Fiat money

This type of money does not have any value unless a government says it does

• Commodity money

• Representative money

• Fiat money

This type of money is considered legal tender and gets its value from the people's faith in the government.

• Commodity money

• Representative money

• Fiat money

People will allow you to buy their homemade items with a piece of paper money is an example of which characteristic of money.

• Durability

• Portability

• Divisibility

• Uniformity

• Acceptability

The fact that a $20 bill can be exchanged for a 10, a 5 and 5 ones is an example of which characteristic of money?

• Durability

• Portability

• Divisibility

• Uniformity

• Acceptability

The fact that your currency fits easily into your pocket, wallet or purse is an example of which characteristic of money?

• Durability

• Portability

• Divisibility

• Scarcity

• Acceptability

The circular flow model of a market economy shows

• how profits are made
• what inputs are required for what outputs
• how many firms can support the needs of how many households
• the interactions between households and  firms in the free market

What do businesses provide for consumers according to the circular flow model?

• goods and services
• only goods
• only services
• taxes